Key Factors that Make ‘Free Business Models’ Successful in Software as a Service Ventures
Independent thesis Advanced level (degree of Master (Two Years)), 10 credits / 15 HE creditsStudent thesis
This thesis research analyzes why and how Software as a Service (SaaS) ventures can succeed or fail using the two forms of free business models: freemium and free based on a multi-sided platform. Software as a Service ventures nowadays need a strong market presence and visibility to be financially sustainable, and that is why they are constantly innovating methods to reach solvency. Many of those companies chose free business models to reach that market presence and economic growth.
Academic research in this subject is very limited, and there is no framework or guide that shows how companies using these business models can succeed. The aim of this research is to address that gap and determine the key factors that lead to success for ventures using these business models.
The researchers‘ approach of understanding, analyzing and deciphering these business models stands on a qualitative open-ended research strategy with case studies, backed by interviews of companies using these business models. The findings are based on the gathered and analyzed data from the case studies and the interviews.
The result of this research is the classification of key factors in three major groups: Customers, Development Strategy, and Business Sustainability. This research expands the information and understanding in the field of business models, and more precisely freemium and free based on a multi-sided platform. Also, it demonstrates that both free business models can be a viable choice for SaaS ventures.
Place, publisher, year, edition, pages
2015. , 50 p.
Customers, Business Models, Business Model Innovation, Business Sustainability
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-189260OAI: oai:DiVA.org:kth-189260DiVA: diva2:944939